I N S U R I N G I N V E S T M E N T S E N S U R I N G O P P O R T U N I T I E S
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
MIGA’s Role
MIGA is the entity within the World Bank Group that promotes developmentally sound foreign direct investment. It does this by providing political risk insurance (guarantees) to the private sector.
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
Why Promote FDI?
Job creation and provision of basic infrastructure “Freeing up” government resources for
spending in basic education, etc. But the majority of flows go to just a handful of
countries—leaving the world's poorest economies largely ignored….
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
MIGA’s Strategic Priorities
Insuring investments In IDA-eligible countries In conflict-affected environments In complex infrastructure projects From one developing country to another (South-
South)
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
Risks
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
Risks covered
Currency inconvertibility and transfer restriction Expropriation War and civil disturbance, including terrorism Breach of contract
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
Added Value for Investors
MIGA guarantees can help investors Access funding, and lower borrowing costs Access the WBG’s collective knowledge and
expertise Establish best practice in environmental and
social management Resolve disputes by leveraging the WBG
“umbrella” Mobilize and complement insurance capacity
from other public and private insurers through coinsurance and reinsurance
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
Disclosure
Summary of Proposed Guarantee Environmental and Social Review Summary Environmental Impact Assessment Project Brief
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
$115 million guarantee hydropower in Uganda
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
$427 million guaranteeport in Djibouti
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
$7.3 million guaranteeMoldova financial sector
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
Working with World Bank Group
Six strategic themes Contribution to Country Assistance/Partnership
Strategy Participation in specific projects with other Bank
group entities Specific initiatives Environmental and social standards, information
disclosure
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
4.36
0.130.42
1.05
2.28
5.20 5.255.08
6.5
5.19 5.10
Gross Exposure2008, US$ billion
US$20 billion issued
in close to 100
developing countries
since 1988
2008
5.40
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
Knowledge Agenda
Lack of knowledge and information about
investment environments and opportunities,
and perceptions of political risk often inhibit FDI
in the countries that need it the most.
www.FDI.net
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
www.pri-center.com
MULTILATERAL INVESTMENT GUARANTEE AGENCY WORLD BANK GROUP
www.miga.org